transport Secretary Denies Budget Leaks Harmed Economy, Details Key Labour Priorities
LONDON – Transport secretary Heidi Alexander today dismissed suggestions that pre-Budget leaks negatively impacted the economy, outlining key priorities for the upcoming financial plan under the Labour government. Speaking on the BBC’s Sunday with Laura Kuenssberg program, Alexander emphasized a focus on reducing the cost-of-living, alongside commitments to address NHS waiting lists and national debt.
A significant element of the planned Budget is expected to be the potential scrapping of the two-child benefit cap – a policy limiting universal credit or tax credit claims to the first two children – a move initially introduced by the Conservatives. While Alexander stopped short of confirming the cap’s removal, she affirmed that tackling child poverty is “in the DNA of the Labour Party,” stating, “One of the defining elements of this government for me is about what we can do to ensure that children’s chances in life aren’t determined by the size of their parents’ bank balance.”
The potential removal of the cap, estimated by the Institute for Fiscal Studies to cost over £3bn, has drawn criticism from Conservative MP Mel Stride, who argued it was “a matter of fairness” that benefit recipients face the same family planning considerations as those not reliant on state support.
Alexander countered by highlighting the need for responsible government spending, questioning whether the Chancellor possesses “the backbone to control government spending…take those tough choices and thus not have to start putting up taxes again in areas that are going to damage the economy.”
Other parties have weighed in on the anticipated Budget. Green Party leader Zack Polanski hailed the potential scrapping of the two-child cap as a “victory,” advocating for increased taxation of the wealthy instead of burdening working people. Labour MP John McDonnell, former shadow chancellor, expressed hope for a “redistributive Budget” prioritizing tax increases for corporations and high-income earners. He also alluded to internal Labour challenges, citing a “lack of direction and some elements of competence.”
Separately,the government announced a freeze on rail fares in england for the first time in decades.
